In pursuit of wealth

Wealth Creation

Accumulation of assets that generates income over a long span is known as Wealth Creation.

Wealth refers to basket of assets; cash, land, property, gold, shares, mutual funds, bonds all added together. Wealth is created by investing in these assets with an expectation that the price will move higher. This rise in price over a period of time is what will lead to growth in wealth.

Investors should ideally hold good quality assets for relatively long periods of time to benefit from potential increase in value.

Different financial securities serve different investment objectives. You need to know whether it is regular income or wealth creation which you seek.

If you don’t know the difference, there is a chance you may pick the wrong security product.